Dow and Ineos are two of the world’s largest chemical companies. Both found themselves in tight financial situations at the start of the year. Dow’s debt rating was cut to just above junk, whilst Ineos had to ask for covenant waivers.
Since then, Dow has moved to tackle its debt issues very energetically. First it sold Morton Salt for $1.7bn. Then it sold $2.25bn of new equity, whilst successfully refinancing $4.65bn of long-term debt. Now it has announced further sales of its calcium chloride and TRN refining businesses for $925m.
Ineos has not yet announced asset sales. And the company has had to ask lenders for an extension to July for its covenant waivers, whilst discussions continued on its proposed new business plan. However, CFO John Reece told Reuters last week that ‘there was “a lot of activity” in the company’s plans to sell assets, with proceeds to be used to pay off debt’.